Policy Announcements under Viksit Bharat - July Budget 2024

Finance Minister Nirmala Sitharaman announced the Union Budget 2024-25 in Parliament today. The key highlights of the budget include a focus on employment generation and skill building, providing support to MSMEs, and creating opportunities for farmers, youth, women, and the poor. The government has listed 9 key priority areas to provide impetus for development:

• Productivity in the Agri sector 

• Employment and Skill Development 

• Inclusive Priority and Social Justice 

• Manufacturing and Services 

• Urban Development 

• Energy Security 

• Infrastructure 

• Innovation and Research 

• Next Generation Reforms

Here are some of the key Union budget policy announcements to promote these priority sectors:

Agriculture Sector

• Provision of Rs. 1.52 lakh crore for the agriculture and allied sectors.

• Establishing 10,000 bio-input resource centers based on need is planned. 

• Natural farming programs, including branding and certification, will be expanded to reach 1 crore farmers across the country in the next 2 years.

• Cooperatives and startups in vegetable production and supply chain will be promoted for development of large clusters closer to consumption centres.

• Financial support for shrimp breeding centres will be provided, export will be facilitated through NABARD.

• Kisan Credit Cards to be launched in 5 states.

• Farmers will soon be able to cultivate 109 newly developed high-yielding and climate-resilient varieties of 32 different field and horticulture crops.

• 6 crore farmers and their land will be brought into the farmer and land registry.

• Digital Public Infrastructure (DPI) will be implemented to cover farmers and their lands within 3 years. Jan Samarth-based Kisan Credit Cards will be issued to farmers on the basis of digital surveys.

Skilling and Employment

FM Sitharaman announced a package to boost the skilling of youth and build employability. 

Skilling Programme and Upgradation of Industrial Training Institutes

• Nearly one thousand Industrial Training Institutes (ITIs) will be modernised as hub and spoke in 5 years.

• Focus on outcome and quality in collaboration with states and industry.

• Course content and design to be as per industry skill gap and demand.

Internship in Top Companies

• One crore youth will be skilled in 500 companies via internships in five years.

• A one-time assistance of Rs 6000 and a 12-month Prime Minister's Internship with an allowance of ?5,000 per month will be provided.

Employment Linked Incentive

FM announced the PM's package of three schemes for employment-linked incentives. These schemes will be based on incentivizing first time employment and EPFO enrolment.

Scheme A: First Timers 

• First-timers will receive one month's wage as a new entrants to workforce in all formal sectors in 3 instalments up to Rs. 15,000.

Scheme B: Job Creation in Manufacturing

• Encourage job creation in the manufacturing sector by promoting a scheme for providing first-time employment.

• Incentive will be given to both employees and employers for EPFO contributions in the specified scales for the first 4 years.

Scheme C: Support to Employers

• Up to Rs. 3,000 per month will be reimbursed by the government as employers’ EPFO contributions for two years for each additional employee.

• The eligibility limit for this will be a salary of Rs. 1 lakh per month. The scheme is expected to create 50 lakh jobs.

Revision of Model Skill Loan Scheme for Students

Union Budget 2024 has proposed revision of the Model Skill Loan Scheme to help 25,000 students every year. 

• To Facilitate higher participation of women in the workforce, working women's hostels and creches will be set up in collaboration with industry.

• Model Skill Loan Scheme will be revised to facilitate loans up to Rs 7.5 lakh with a guarantee from a government-promoted fund.

• Scheme will aid 25,000 students every year.

• Government will provide financial aid for high education loans in domestic institutions for an amount of up to Rs. 10 lakh.

•  Direct E-vouchers will be given to 1 lakh students every year along with an annual interest subvention of 3%.

MSMEs, Manufacturing and Services

Here are the announcements for MSMEs:

• Credit Guarantee Scheme for MSMEs in the Manufacturing Sector introduced. A guarantee cover of Rs 100 crore will be provided for a higher amount of loan.

• New assessment model for facilitating bank credit to MSMEs during their stress period

• The limit for Mudra loans increased from current Rs.10 lakh to Rs. 20 lakh

• Turnover threshold for mandatory onboarding on TReDS platform was reduced from Rs. 500 crore to Rs. 250 crore.

• Financial support for 50 multi-product food irradiation units in the MSME sector.

• E-Commerce Export Hubs to be set up to enable MSMEs and traditional artisans to sell their products in international markets.

• Strengthening of the tribunal and appellate tribunals to speed up insolvency resolution and additional tribunals to be established

• SIDBI to open 24 new branches to expand its reach within 3 years.

Infrastructure

• Provision of Rs. 11,11,111 crore for infrastructure (3.4% of GDP). 

• Rs. 1.5 lakh crore announced for states as interest free loans to support resource allocation. 

• Investment-ready ‘plug and play’ industrial parks to be developed in or near 100 cities

• 12 industrial parks approved under the National Industrial Corridor Development Programme.

• Critical Mineral Mission to be set up for domestic production, recycling of critical minerals, and overseas acquisition of critical mineral assets.

• Rs 10 lakh crore allocated for providing 1 crore houses to urban poor and middle class.

• Rental housing scheme announced for the working class. The Government will facilitate dormitory type rental housing for industrial workers in PPP mode.

• Financial support for irrigation projects with an estimated cost of Rs. 11,500 crore such as the Kosi-Mechi intra-state link and 20 other ongoing and new schemes.

Innovation, Research and Development 

• A venture capital fund of Rs. 1,000 crore announced for space research and development.

• A financing pool of Rs 1 lakh crore announced for private sector-driven research and innovation at commercial scale.

Inclusive Development

• Allocation for Eastern region covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh for generating economic opportunities.

• Pradhan Mantri Janjatiya Unnat Gram Abhiyan for tribal communities covering 63,000 villages benefitting 5 crore tribal people. 

• Rs. 3 lakh crore allocation for schemes benefitting women and girls.

Conclusion

Government has announced a comprehensive budget to address the imminent need for employment generation, skill development, and new initiatives in agriculture, MSMEs, infrastructure, and other priority sectors. Visit our social channels for more budget updates!